With our world becoming increasingly more reliant on technology and the internet, every single day we make decisions about completing our normal day-to-day goals, including whether we complete them behind our screens or in real life. Whether it is shopping for a new pair of shoes, catching up with an old friend or even banking, there are options available for all of these at the convenience of your fingertips.
According to the American Bankers Association, a survey conducted in 2023 showed that 48% of consumers said they do their banking through their mobile device and 23% through their laptop or PC. With that, it’s not surprising that online-only banks are trending. However, when it comes to online-only banks, you may want to ask yourself a few questions before giving up on your brick-and-mortar bank. For many people, the services offered by traditional financial institutions including First Bank Texas can’t be easily replaced, so it’s important to compare the differences before you make the switch.
What is the difference between online banking and an online bank?
Online banking includes a suite of services to take care of your money – from transferring funds and depositing checks to paying bills or sending money to a friend - all via the Internet. Most financial institutions like First Bank Texas offer online banking, while also offering the convenience to customers of visiting a local branch location in Texas if you want a more personal experience.
An online-only bank, however, does not have a physical branch location, so all of its services are completely accessed through its website, mobile banking app or phone.
Why DO people choose an online-only bank or credit union?
For some people with less complex financial needs, an online-only financial institution may make sense. Here are some of the reasons they might choose an online-only bank or credit union.
- Free ATMs - With an online-only institution, you will typically have access to a free ATM network with thousands of locations nationwide.
- Easy and convenient - Wherever and whenever you have internet access – either on your computer or mobile device – you can access many of your digital banking needs at the click of a button.
- Less expensive - No physical branches often mean higher interest rates on savings accounts and lower fees. But it’s best to read the fine print so you know exactly what you are getting into. First Bank Texas offers Savings account options, such as our First Savings, First Money Market, and Certificate of Deposit accounts to help you grow your wealth.
Why DON’T people choose an online-only bank?
Despite the allure of online-only financial institutions, for many people, the pros don’t outweigh the cons. Some of the drawbacks of digital-only banks include:
- Lack of Personal Service - Sometimes you have a need for someone to answer your questions in person when you need help. With an online-only bank, you will have to rely on help via online chat, email, or by phone.
- Limited Products and Services – Online-only banks don’t typically offer the variety of products and services that traditional brick-and-mortar institutions offer. Offerings like mortgages, SBA loans or special business services may not be available as you might expect with a traditional bank.
- Cash Depositing Difficulty - Because there is no physical location to visit, it can become difficult to make cash deposits. Sometimes, online banks and credit unions require money orders to get the cash into your account, which can be a hassle. If depositing cash is a need, this is something to be aware of.
- Check Twice for Checking - Some online-only banks do not offer checking accounts. Typically most consumers need a checking account, so if that’s a must-have on your list, make sure to investigate further. At First Bank Texas, we offer a range of checking accounts including our First Checking, First Reward Checking, and First Patriot Checking accounts.
The steady rise of online-only banks has increased competition in the financial world and offered another choice for consumers to manage their banking. Aligning your individual needs and values with the pros and cons of both options will help you decide which type of banking institution is best for you. Always keep in mind that First Bank Texas is dedicated to helping our customers – online, over the phone or at one of our North Texas branches. Contact Us today.
